Canadian Phoenix Resources Corp.
TSX VENTURE : CXP

Canadian Phoenix Resources Corp.

April 27, 2011 21:13 ET

Canadian Phoenix Releases Fourth Quarter and Annual Results

CALGARY, ALBERTA--(Marketwire - April 27, 2011) -CANADIAN PHOENIX RESOURCES CORP. (TSX VENTURE:CXP) ("Canadian Phoenix" or the "Corporation") announces its results for the three and twelve months ended December 31, 2010.

2010 FOURTH QUARTER AND ANNUAL HIGHLIGHTS

Significant transactions in 2010

  • During 2010, the Corporation undertook significant transactions to preserve existing capital and build a strong financial position from which it can strategically re-invest in the oil and gas sector:
    1. On May 26, 2010, the Corporation recorded a $13.2 million gain on the disposal of its controlling stake in Serrano Energy Ltd ("Serrano") for gross cash proceeds of $24.8 million;
    2. On June 25, 2010, the Corporation recorded a $12.8 million gain on the disposal of its equity investment in Marble Point Energy Limited ("Marble Point") for net cash proceeds of $44.7 million;
    3. During 2010, the Corporation issued 7,787,767 of its common shares for cash proceeds of $9.7 million by way of exercise of common share purchase warrants, including 6,470,608 common shares for proceeds of $8.1 million in the fourth quarter. In January 2011, additional warrants exercised resulted in the issuance of 4,429,478 common shares for $5.5 million; and
    4. Loans payable as at December 31, 2009 of $12.1 million were fully repaid in the second quarter of 2010.
  • As result of these transactions, the Corporation held $75.0 million in cash and cash equivalents as at December 31, 2010, which has increased to a current balance of over $79.6 million.

The Corporation, through a Special Committee of the Board of directors, is actively seeking investment opportunities in the oil and gas sector. Neither the exact timing, nor the form of an appropriate transaction is known, but potential opportunities continue to be assessed.

2010 Financial results and select financial information

Following the Serrano disposition, the Corporation lost most of its producing assets and, as a result, oil and gas revenues are significantly lower in the three and twelve months ended December 31, 2010 compared with 2009. Future production from the Corporation's remaining assets is not expected to be significant and related revenues will remain low. Without the benefit of future cash flows from Serrano's assets, the Corporation recorded $5.9 million in total impairments to its oil and gas assets in 2010, including a $0.9 million charge in the fourth quarter.

Selected financial results, which include revenues earned and expenses incurred from Serrano prior to May 26, 2010 as well as equity losses from Marble Point incurred prior to June 25, 2010, are as follows. The audited annual financial statements and related MD&A can be found on SEDAR's website at www.sedar.com and the Corporation's website at www.canadian-phoenix.com.

Selected Financial and Operational Information
($ thousands, except as indicated)
For the three months
ended December 31
For the year ended
December 31
2010200920102009
Net income (loss)(1,567)(5,653)9,299(30,452)
Earnings (loss) per share - basic and diluted ($)(0.03)(1.16)0.20(0.66)
Petroleum and natural gas ("P&NG") revenue725,7938,43818,414
Total P&NG production (boe)2,33593,477142,585355,526
Average realized price of oil ($/boe)95.2762.9361.1253.01
Average realized price of natural gas ($/mcf)3.884.694.334.29
Netbacks(280)2,2562,5267,336
Gain on sale of Serrano--13,161-
Gain on sale of Marble Point--12,842-
Impairment of property, plant and equipment(900)-(5,900)(7,664)
Net loss - equity investment-(2,144)(1,026)(10,254)
Funds (used in) from operations(337)(103)(5,035)270
Capital expenditures311,77961110,085
As at December 31
20102009
Cash on hand75,019459
Working capital surplus (deficiency)74,449(13,226)
Total assets76,75399,465
Total loans payable-12,079
Common shares outstanding154,039,24046,252,495
Fully diluted common shares outstanding176,906,00874,544,630
Footnote:
1 Following the exercise and expiry of certain warrants in the first quarter of 2011, common shares and fully diluted common shares outstanding were 58,468,718 and 72,224,966, respectively, as at April 27, 2011.

About Canadian Phoenix

Canadian Phoenix Resources Corp. is a publicly-traded junior oil and gas exploration, development and production company with operations in Western Canada. Canadian Phoenix's shares trade on the TSX Venture Exchange under the symbol "CXP".

FORWARD-LOOKING STATEMENTS:This news release may contain forward-looking information. All statements and information other than statements of historical fact are forward-looking information. In some cases, forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of Canadian Phoenix, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Canadian Phoenix will derive there from. The forward-looking statements and information contained in this news release are made as of the date hereof and Canadian Phoenix undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canadian Phoenix Resources Corp.
    Michael Atkinson
    President & CEO
    (604) 689-1428

    Canadian Phoenix Resources Corp.
    John Downes
    Interim Chief Financial Officer
    (604) 488-5415
    www.canadian-phoenix.com